Opportunity Day 30 March 2017 Draft Background and Business - - PowerPoint PPT Presentation

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Private & Confidential

Opportunity Day 30 March 2017

Draft

Background and Business

Page 2

Company History and Background

• Opened La Villa

Phaholyothin branch

• The 1st After You

welcomed its customers at J Avenue Thonglor with registered capital THB 5 mm

• Opened Central

World branch

• Central World

branch was closed due to the country crisis

• Opened Paragon

and Crystal Park branches

• Opened Central

Ladprao, Int-Intersec and Silom Complex branches

• Group

Restructuring

• Started Catering

Service

• Re-opened

Central World branch

• Group

Restructuring

• Opened The Mall

Bangkapi and SQ1 branches

• Launched Open

new brand, Crumb at Central Embassy

• Increased

registered capital to THB 50 mm

• Opened Crystal

Ratchapruk, maharaj, Mega Bangna, The Mall Bangkae and Future Park Rangsit branches

• Closed Crumb
• Registered new

subsidiary, Aurum and Aurum Co., Ltd

• Increased

registered capital to THB 54 mm

• Started operation
• f new factory at

Samutsakorn province

• Launched new

brand, Maygori at The Common and SQ1

• Opened Terminal

21 and Seacon Square branches

• Converted to

PCL

• Increased

registered capital to THB 80 mm for IPO

• Started new

headquarter construction process

• IPO on 23

December 2016 2009 2010 2007 2011 2012 2013 2014 2015 20 Branches 15 Branches 11 Branches 8 Branches 2 Branches 1 Branch 2 Branches 4 Branches 7 Branches Source: Company data as of 31 December 2016 2016

Page 3

Company Business

After You Plc.

• Dessert café

Aurum and Aurum Co., Ltd

• Sourcing raw material

100%

Group Structure Revenue Contribution

Name Established year # Branches Location Style Products Price Range (Bt./menu) After You 2007 18 Bangkok Metropolitan Region Dessert café Variety of products including cakes, cookies, toasts, breakfast, and beverages 125 – 255 Maygori 2016 2 Bangkok Shaved ice dessert café Variety of shaved ice desserts 185 - 235 Total 20

Dessert Café Overview

98.3%

Catering & OEM

1.4% 0.3%

Note: Revenue portion of 2016 Source: Company data as of 31 December 2016

Others &

Page 4

Board of Directors and Management Structure

Board of Directors Position

• 1. Mr. Premon Pinskul

Chairman, ID & AC

• 2. Mr. Wiwat Kanokwatanawan

Vice Chairman

• 3. Mr. Phiched Bhimayothin

ID & Chairman of AC

• 4. Dr. Thamnoon Ananthothai

ID & AC

• 5. Mr. Maetup T.Suwan

Director

• 6. Ms. Gulapat Kanokwatanawan

Director

• 7. Mr. Mill Kanokwatanawan

Director Company’s Structure Management Position

• 1. Mr. Maetup T.Suwan

Managing Director

• 2. Ms. Gulapat Kanokwatanawan

Deputy Managing Director

• 3. Mr. Mill Kanokwatanawan

Assistant Managing Director

• 4. Mr. Songpon Tasnasathienkij

Director of Operations

• 5. Ms. Uraiwan Samanwong

Director of Manufacturing

• 6. Ms. Pornsirin Thongtan

Director of Human Resource

• 7. Ms. Chamaiporn Tungkittisuwan

Director of Finance & Accounting

* Outsourcing

Operations Manufacturing Company Secretary Human Resource Finance & Accounting Managing Director Deputy Managing Director Internal Audit* Board of Directors Audit Committee Assistant Managing Director

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Key Investment Highlights

Page 6

Key Investment Highlights

Experienced and Visionary Management Team Quality Products and Excellent Services Pioneer of Dessert Café and Leader in Product Innovations Strategic Locations under Multiple Formats High Growth Potential with Strong Brand Awareness

2 3 4 5 1

Page 7

Pioneer of Dessert Café and Leader in Product Innovations

1 Traditional Coffee Shop Pioneer of Dessert Café Traditional Bakery Shop Traditional Dessert

After You is dedicated to building great customer experience, offering products made from the finest ingredients, keeping the highest standard of quality and service, and creating a unique cozy and warmth atmosphere for everyone to enjoy

Page 8

1 Examples of New Product Launches in the Last 3 Years

After You continuously offers new menus and recipes to enhance customers’ experience and satisfaction

Examples of New Product Launches in the Last 3 Years

Pioneer of Dessert Café and Leader in Product Innovations (Cont’d)

Page 9

Pioneer of Dessert Café and Leader in Product Innovations

1 Customer’s Recognition Customer-Focused Product and Service, Operational Best Practice, and Entrepreneurship Bai Po Business Award 2015 Popular restaurant 2014 Wongnai Restaurant Awards Users’ choice award Bakery & Cakes category Best of Wongnai 2015 & 2016 9th Best Marketers by FM 100.5 Best Marketers 2013

After You products receive overwhelming demand from customers and many award achievement from 2013 - 2016

Awards and Achievement

Page 10

Quality Products and Excellent Services

2 Integrated End-to-End Operating Process with Strict Quality Control Standard Suppliers Factory/ Warehouse Branches Customers

• Achieving effective

inventory management

• Carefully control every stage
• f production
• Focusing on high quality of

products & good services

• Offering wide ranges of

products as well as regularly introducing new products

• Creating & strengthening

customer satisfaction as well as building up a loyal membership base

• Using a strict

procurement procedure (sourcing, quality, quantity, tastiness, freshness, safety, pricing)

Page 11

High Growth Potential with Strong Brand Awareness

3

After You is strategically positioned to ride the next wave of growth opportunities

Continued Growth in Our “After You” and Sub Brands Launching New Brands or New Platforms

• Continuous growth through over 7% (2016) of Same Store Sale Growth

with new product introductions, price adjustment, seating arrangement and management of table turn times

• Continuous growth through outlet expansion in potential strategic

locations in major cities of Thailand to reach 30 branches in 2018

• Potential growth through outlet expansion in ASEAN fast

growing countries and/or other potential countries

• Leveraging our brands, our strong recognition and market

position allows us to expand both domestically and regionally by launching new brands or new platforms Expanding OEM and Catering

• With the new factory capacity,

the Company has plenty of room to grow in the OEM business under clients’ brand, co-brands or the Company’s brands as well as expanding catering business

• This can lead After You diversifying its revenue base and/or

platform with more balanced revenue contribution from dessert café, OEM, and catering

(Unit : THB bn) 2010 2011 2012 2013 2014 2015E 2019E

Source : Euromonitor

• In 2010 – 2015, CAGR of

food industry is 2.8% while the Company had outstanding CAGR at 85.2%

• Food industry

trend is continuing growth at 6.0% CAGR from 2015 to 2019E Growth of Food Industry Continued Growth in Our “After You” and Sub Brands Launching New Brands or New Platforms

Page 12

Strategic Locations under Multiple Formats

4

After You offers multiple store formats at high traffic in all strategic locations in Bangkok Metropolitan Region to reach every target group of different genders, occupations, and lifestyles

Outlet expansion Criteria After You carefully study & analyze concerning traffic, location, target customers, payback period and return on investment to expand both domestically and regionally in multiple formats Strategic and landmark location

Become anchor tenant High population density High traffic area & visibility Growth potential area

Well – managed and well equipped shopping mall

Have a good facilities Offering a wide range

• f goods in different

product categories Manage by experienced management team Sizable shop Sizable in terms of area and lay out

Good rate

• f return
• n

investment

Initial investment ~ THB 4.5 – 7.5 mm. Meet minimum required rate

• f

return Payback period ~ 1 – 2 years

• After You’s current

branches (20 branches) covering all strategic locations of Bangkok Metropolitan Region

• After You plans to

expand branches to potential strategic locations in major cities

• f Thailand to reach 30

branches in 2018

Source: Company data as of 31 December 2016

Future Plan Current Locations

Current Locations & Future Plan

Page 13

Experienced and Visionary Management Team

5

Chairman, Independent Director and Audit Committee

• Experienced in being Independent

director and Audit Committee member as well as management of leading listed companies

• Independent director and Chairman of

AC of JAS Assets PCL

• CFO of Impact Electron Siam and

former CFO of GMM Grammy PCL

• Mr. Premon Pinskul

Vice Chairman

• Experienced in being Director and

Management of listed companies

• Director and CEO of Pakfood PCL
• Directors of numerous companies in

frozen food and related industries

• Mr. Wiwat Kanokwatanawan

Independent Director and Chairman of Audit Committee

• Highly experienced in the field of food

industry especially factory management

• Consultant of Pakfood PCL
• Former Factory Manager of Pakfood

PCL

• Mr. Phiched Bhimayothin

Independent Director and Audit Committee

• Experienced in being Independent

director and Audit Committee member as well as management of leading companies

• Independent director and Audit

Committee of Thai Union Group, Merchant Partner, Better World Green, IFS Capital

• Dr. Thamnoon Ananthoth

Directors , Managing Director and Founder

• Founded After You and led After You

from a small dessert café to a well- known company

• Mr. Maetup T.Suwan

Directors, Deputy Managing Director and Founder

• Founded After You and led After You

from a small dessert café to a well- known company

• Pioneered innovative dessert menu such

as Shibuya Honey Toast, Kagikori

• Ms. Gulapat Kanokwatanawan

Director, Assistant Managing Director

• Experienced in the field of finance

and banking

• Mr. Mill Kanokwatanawan

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Key Financial Performance

Page 15

Revenue Breakdown

Sales

(THB mm)

• No. of branches

8 10 15 20

Same Store Sale Growth (SSSG) Average Sales per Branch

During 2013-2016, 98% - 99% of total revenue came from sales in After You and Maygori dessert café. The sales grow continuously from new branch

• pening and same store sale growth (SSSG)

The Company had 2.5 times its branches from 8 branches in 2013 to 20 branches in 2016, while sales increased at CAGR of 47.5% from 2013 - 2016 The Company had outstanding SSSG with new product introduction, price adjustment, seating arrangement and management of table turn times Average Sales per branch increase continuously from THB 25.0 mm per branch in 2013 to THB 32.2 mm, THB 34.8mm, and THB 37.5 mm per branch in 2014, 2015, and 2016 respectively

(THB mm per branch) (%)

Note: * There was no 2012 information for SSSG calculation

188.8 311.1 414.4 606.4 2013 2014 2015 2016 26.7% 9.2% 7.7% 2013 * 2014 2015 2016 25.0 32.2 34.8 37.5 2013 2014 2015 2016

Page 16

Financial Performance

Gross Margin increased from 48.4% in 2013 to 63.5%, 62.3% and 64.1% in 2014 2015 and 2016, respectively because of the efficiency on cost control especially cost management of raw materials used in production which is the main cost

• f sales

Similarly to gross margin, net margin rose up from 3.0% in 2013 to 14.7% in 2014, 13.9% in 2015 and 16.2% in 2016 Return on assets decreased sharply in 2016 due to increase in cash received from IPO in December 2016, leading to increase in total assets Similarly to return on assets, return on equity dramatically decreased in 2016 due to increase in share premium from IPO in December 2016, leading to increase in equity

(THB mm) (THB mm)

Gross Profit & Gross Margin Net Profit & Net Profit Margin Return on Asset & Return on Equity

(%)

91.3 197.5 258.1 388.6 2013 2014 2015 2016 Gross Margin 5.6 45.8 57.5 98.8 2013 2014 2015 2016 Net Profit 3.0% 14.7% 13.9% 16.2% % Net Profit 48.4% 63.5% 62.3% 64.1% % Gross Margin 4.7% 22.7% 20.4% 14.7% 40.9% 75.2% 51.5% 21.3% 2013 2014 2015 2016 Return on Assets (ROA) Return on Equity (ROE)

Page 17

Balance Sheet

Financial Position

(THB mm) (x)

Interest Bearing Debt/ Equity (IBD/E) Interest Coverage Ratio

(x)

Note: * Having group restructuring in 2012 – 2013; therefore, interest coverage ratio cannot be calculated

Total assets increased significantly in 2016 mainly due to increase in cash received from IPO in December 2016. Total assets of 2015 increased from 2013- 2014 because of the new assets booking from the new factory such as building and equipment Mainly decrease in total liabilities in 2016 was due to repayment of personal

• loan. Total liabilities in 2015 increased from 2013 and 2014 in line with increase

in total assets because of loan for construction of the new factory and purchase

• f equipment

Shareholders’ equity in 2016 dramatically increased due to increase in share premium from IPO in December 2016 IBD/E decreased significantly because of the increase in paid up capital and share premium During 2014 - 2016, the Company has the negative cash cycle which was (18), (22) and (21) days because the Company gets cash from selling but receives the 0-30 days of credit term from suppliers 202.5 201.2 363.8 981.9 18.7 95.0 246.8 173.1 15.4 106.2 117.0 808.8 2013 2014 2015 2016 Total Assets Total Liabilities Total Shareholders' Equity

• 16.7

34.8 18.8 2013 * 2014 2015 2016 10.0 0.5 1.3 0.1 2013 2014 2015 2016

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Q&A